It seems like prepaid cards often get a bad wrap for the fees they charge. Maybe that’s because every prepaid card charges some type of fee, even the low fee cards. Since I have yet to find a prepaid card that doesn’t charge any fees, I thought it might be a good idea to review the fees that are most commonly in place. Since we can’t avoid the fees all together, we can at least know what were up against. Knowing the fees will help you when your searching for a card that fits your needs. Many of the popular cards waive some of these common fees, and these cards are highlighted below.
Activation Fee: An Activation Fee is the fee that is charged when you first activate the card. Some cards call this fee a start up fee. Its basically just the amount you have to pay to get the account started. It is a one time fee so once its paid it paid! Some cards will wave this fee as a special offer or just not charge this fee which helps make their card more appealing. If you want a card that does not charge an Activation Fee check out these:
- Mango Prepaid MasterCard®
- Green Dot Prepaid MasterCard®
- AccountNow Prepaid Visa® Card
- YAP MasterCard Prepaid Card
Monthly Fees: The Monthly Fee is the reoccurring fee you pay once a month for the card maintenance. It’s really just the charge you pay to be a card member. The fee is usually between $5 and $15 and the charge is automatically deducted from your account balance. Some cards have special offers that waive the monthly fee. If a card waives the fee, there is usually some stipulation to it. One stipulation could be the monthly fee is waived if you deposit $500 a month to the account or use direct deposit. Here are some of the top cards that waive monthly fees under certain circumstances:
- Mango Money Prepaid MasterCard (monthly fee waived if $500 or more is deposited on the card each month)
- Green Dot Prepaid MasterCard® (monthly fee waived if you load at least $1,000 to your Card or have 30 posted purchase transactions)
- Account Now Gold Visa® Prepaid Card (monthly fee waived if you load $3000 or more on your card in a month)
- Bank Freedom Prepaid MasterCard (no monthly fee with a minimum direct deposit or bank to card transfer of $350 per month or free when you load cash to your card account totaling $700 per month or more)
Transaction Fees: A Transaction Fee is the charge you incur when you make a purchase with your card. Some cards only charge a fee when you make a purchase without your PIN. This would mean that instead of using your PIN to make the purchase you sign for the purchase instead. Here are some cards that don’t charge a transaction fee when you use your PIN.
Load Fees: A Load Fee is the charge you incur when you add money to the card. Often there are ways to avoid this charge. Many cards offer free direct deposit and if you have your funds added this way you don’t have to be charged. Here are some cards that offer free direct deposit.
- Mango(TM) MasterCard Prepaid Card
- Green Dot Prepaid MasterCard®
- AccountNow Prepaid Visa® Card
- NetSpend® Visa® Prepaid Card
ATM Fees: The ATM Fee is the fee you are charged when you withdraw money from an ATM. Some cards charge an ATM fee when you get your account balance from an ATM too. An ATM Fee is a fee that most cards charge. Some cards will have it set up so you can go to an ATM within their “network” not be charged a fee.
Statement Fees: Just about every card charges a statement fee. This is because they usually offer this same information on their website for free. Many cards offer fee online account access which allows you to view your statement, balance information and card history.
Customer Service Fee: Cards often charge a fee if you calling customer service. If you need to call them about account information or your account balance then you will get charged a fee. If your card offers online banking then you are going to be able to find this information for free through your online account. Some cards offer the option to call into customer service and get up to date account information via their automated system. You usually only get charged the fee if you call in and actually talk to alive person.
Declined Fees: A Decline Fee is charged when you use your card to make a purchase or a withdraw and don’t have enough on your card for the transaction. The transaction will be declined and some cards charge a fee for when this happens. Typically it is $0.15 to $2.00 for the fee.
Dormancy Fees: If you don’t use your card for a period of time some cards charge a fee. For example, maybe your card requires there to be account activity at least once every three months. If you don’t follow this then you could be charged a fee. Dormancy Fees are usually between $1.50 and $5.95.
Replacement Card Fee: Just about every card charges a replacement fee. If your card is lost or stolen and you need a new card you will likely pay a fee for this. In addition, to the fee for a new card you often have to pay for the shipping of the new card too. If you want the shipping expedited then you will have to pay extra for that.